The Next Salvo in the Internet Sales Tax War
Monday, June 29th, 2009
Amazon has an affiliate program where members refer traffic to Amazon for specific products. The members get a percentage of sales made by the referrals. Regular Chad’s News readers will recall that New York state recently decided that an in-state affiliate was sufficient cause to require Amazon to collect state sales taxes on purchases by New York residents. Amazon is challenging this in court as being unconstitutional, but is collecting the tax in the meantime.
Now North Carolina is in the process of changing its tax laws, such that anything purchased through Amazon affiliates in that state would be subject to sales tax. Amazon has preemptively responded to this by shutting down its affiliates in North Carolina. This is an overreaction on the part of Amazon, but the company is very serious about not having to collect sales tax for states in which it doesn’t have a physical presence. State legislatures, however, are reasonably upset over the loss of significant tax revenue to internet retailers. Residents are supposed to voluntarily pay “use taxes” on internet purchases, but that rarely happens.
How this will all end is anyone’s guess. Amazon is up for the fight, however, and the final outcome will be decided in court.
Link #1: http://www.news-record.com/…
(via Slashdot)
Link #2: http://www.news-record.com/…
(via The Consumerist)
Update: Amazon has banned Rhode Island affiliates as well.
One of the banks in my area is offering a free iPod Shuffle to people opening new accounts. Here’s the story of a guy who chose his bank based on a free gift, and he more than paid for it. All I can say is TANSTAAFL (with thanks to Robert Heinlein).
January was a good month for class action lawsuit settlements. Some of them have very broad participation requirements.
Back in 1961, astronaut Gus Grissom took two rolls of dimes into orbit on the Liberty Bell 7 spaceflight. Upon returning to Earth, Grissom’s capsule sank in deep ocean waters and he was forced to leave the coins behind. The capsule was retrieved in 1999, and the dimes now reside in a space museum.
When buying over the internet, if the seller asks you to pay via wire transfer, then it’s most likely a scam. This is because wire transfers cannot be canceled or disputed. The best practice is to use a credit card for internet purchases.
